Apple iPad Event Leaves Verizon iPhone Rumors Adrift

By Michelle Maisto |
Posted 2010-01-28

Apple's Jan. 27 introduction of the iPad
- a 1.5-pound tablet with a 9.7-inch display that was the impetus of
months of conjecture, rumors and excitement - wasn't paired, after all,
with a major AT&T announcement, which had also been expected by the
rumor mills.

However, Apple CEO Steve Jobs, and his colleagues, kept yesterday's spotlight on the iPad.

"We think Apple was wise not to launch a Verizon iPhone because it
would have distracted attention away from the new iPad and at
AT&T," Neil Mawston, an analyst with Strategy Analytics, told
eWEEK.

"Apple has already signed multiple iPhone carrier agreements in other
major countries, such as the U.K. and France, so it feels like just a
matter of time before one or more additional operators in the U.S. get
their hands on the device," Mawston continued. "Having said that,
AT&T was Apple's first launch partner and it gave the iPhone its
first big break in 2007, so perhaps Apple may stay more loyal to
AT&T than some expect."

Analyst Ken Hyers, with Technology Business Research, believes that
when the end of the contract arrives, Apple and AT&T will make the
announcement together.

"Verizon has made no secret of its interest in selling the iPhone, even
as it has jabbed at the iPhone with its -iDon't' commercials promoting
the Droid," said Hyers, referring to the Motorola Droid smartphone that
runs Android. "Verizon is a potentially very attractive network partner
for Apple due to its large base of customers and its robust wireless
data network that is currently being enhanced by the build-out of LTE."

Hyers added that Verizon's customers, 15 percent of whom currently use
smartphones, represent an untapped market that Apple would love to
reach.

"It is just a matter of time before the AT&T-Apple exclusive iPhone
arrangement ends," Hyers continued, saying that while only speculation,
this summer is a strong possibility. "That timing would coincide with
the anniversary of the original iPhone going on sale in 2007."

Analyst Roger Kay, with Endpoint Technologies, hypothesized that the
slow arrival of a Verizon iPhone could be as simple, or as silly, as a
personality conflict.

"If Steve Jobs has a problem with the head of Verizon, that could be
enough," said Kay. "If Jobs tells his troops 'they just don't get it,'
that could be enough for them not to -deserve' Apple's hardware. That
could kill a deal for possibly years."

Kay further clarified, "There's no structural reason why Apple wouldn't ultimately want to expand its carrier partnerships, but there may be issues we don't see, blocking that from coming to fruition."